Understanding the Four Parts of Medicare (A, B, C, and D) in 2026

Medicare is organized into four parts, each covering a different type of care. Knowing what each part does, and what it costs in 2026, can make it much easier to plan for your health coverage.

Part A (Hospital Insurance). Part A helps cover inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people pay no monthly premium because they or a spouse paid Medicare taxes while working. In 2026, the inpatient hospital deductible is $1,736 per benefit period. If you don't qualify for premium-free Part A, you can buy it for up to $565 per month.

Part B (Medical Insurance). Part B covers doctor visits, outpatient care, preventive services, and durable medical equipment. In 2026, the standard monthly premium is $202.90, and the annual deductible is $283. After you meet the deductible, you typically pay 20% of the Medicare-approved amount for most services. People with higher incomes may pay more for Part B.

Part C (Medicare Advantage). Part C plans are offered by private companies approved by Medicare and bundle Part A and Part B coverage together, often with prescription drug coverage and extras. Costs and benefits vary by plan and location. If you enroll in a Medicare Advantage plan, you still need to keep paying your Part B premium. These plans include a yearly limit on out-of-pocket costs, which Original Medicare does not have.

Part D (Prescription Drug Coverage). Part D helps pay for prescription medications and is offered through private plans. In 2026, the annual deductible can be no more than $615, though some plans charge less. Once you reach $2,100 in out-of-pocket drug costs for the year, you pay nothing more for covered drugs for the rest of the year. If you go without creditable drug coverage after you're first eligible, you may owe a late enrollment penalty.

Together, these four parts give you flexibility in how you build your Medicare coverage. Choosing the right combination depends on your health needs, budget, and the plans available where you live.

Source: Medicare.gov

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.